WPP’s Q1 Revenues Slide 5%, but Tariffs Aren’t to Blame

Following disappointing 2024 financial results, WPP’s income took one other hit in Q1 2025. Though tariff chaos engulfed the market within the first three months of the yr, chief government (CEO) Mark Learn informed buyers that consumer budgets had not been massively impacted.

The numbers

5% — year-on-year income decline in Q1 2025 with complete revenues clocking in at $4.2 million (£3.2 million).

2.7% — dip in This fall income much less pass-through prices to succeed in $3.3 billion (£2.48 billion). This was ever so barely beneath the consensus forecast by analysts.

17.4% — income decline in China and a 4.5% lower in takings from Western Continental Europe. North America was broadly flat, whereas the U.Ok. declined by 5.5%. India grew 5.5%.

Watercooler discuss

Regardless of an unremarkable begin to the yr, WPP’s Q1 outcomes had been in keeping with the expectations Learn outlined in February.

The organisation has retained its full-year steerage for 2025, predicting like-for-like income much less pass-through prices to vary between 0% and -2%.

“I don’t need to give the impression that we’re proud of these outcomes. We’re not,” Learn informed buyers and journalists on the post-results name. “It’s not the place we need to be, and we’ve got concrete plans to handle the areas of aggressive underperformance.”

Declines in China (the place WPP’s media-buying division has skilled losses following a Shanghai police investigation into bribery allegations) and Europe dragged down WPP’s complete income development.

Account losses in Q1 included Coca-Cola moving its North America media account to Publicis. Account wins included nabbing Heineken’s international shopper advertising and commerce account.

WPP’s prime 25 shoppers noticed development of two.5% within the three months to March, pushed by “sturdy” efficiency in CPG and enchancment in tech and digital consumer spend. Retail, telecom, and journey noticed declines.

One vivid spot for Learn was WPP’s acquisition of data collaboration platform InfoSum, which he stated will enhance WPP’s entry to “speed up its AI-driven knowledge strategy, leapfrogging conventional identity-based options.”

Yr-on-year income declined at GroupM, the jewel within the crown of WPP’s turnaround plan, by 0.9%, with development within the U.S. offset by consumer losses from “earlier years” and weak spot in China.